View Full Version : Base Pricing Poll
August 17th, 2005, 05:58 PM
Now I know there are quite a few OP's that have base pricing models, although they all arent really the same. As an affiliate, you can't just look at the base price and say, "Hey, there's is lower than OP #2 so I think Ill try them out".
Some OP's have a base price and then split the profits 60/40, some do not have shipping built into the base prices, etc. With our MyOP we originally released it with ALL fees built into the base price... shipping, product costs, etc...
What would be your ideal:
Scenerio #1: Base price includes everything. So if you add any shipping charges or amounts over the base price you realize those profits? You get 100% of whatever you mark up.
Scenerio #2: Lower base price but it just includes the product price. So as a default you must charge $18 shipping. You realize a profit if you increase the base price and either raise or keep shipping at $18. You get 100% of your markup on the base price only. If you have FREE shipping you actually decrease your profit $18.
Scenerio #3: Real low base price. You have to charge $18 shipping. You realize 60% of the difference between the retail and base price, but the base prices are so much lower than anywhere else.
August 17th, 2005, 08:45 PM
I prefer Scenario #1
Just makes it that much simpler to realize what your real base prices are. I dont have to do any 60/40 math or any of that BS. Any affiliate with a brain can figure out which program pays best, a program offering LOW base prices and a 60/40 split shouldnt fool anyone.
August 17th, 2005, 11:07 PM
I completely agree #1 is the best route to go if the base prices are decent for best profit for the affiliate, if going for a super low balling site or 'discount' site option #3 though is the best.
Kind of split here, I like to make money as much as the next guy, but also like to offer savings to people like the uninsured or self employed, etc. Run a mix of both sites, sure you'll all bitch me out as I do 'low ball' on some sites but not for top sellers :)
August 18th, 2005, 08:21 AM
#1 keeps it simple.
August 18th, 2005, 09:06 AM
Thanks for the feedback.Our current structure is scenerio #1. However, many people complained that it was higher than others.. because our included your everything like shipping.
Other affiliates couldnt see past the low base price of another company, and then realize they only get 60%. (see http://pharmgroup.com/partners3.php)
And I think even fewer do not realize they recieve NO second tier with most other companies. (At PharmGroup, we do though)
We have been debating whether we should alter ours to NOT include shipping. Other OP's just make the formula so confusing it's hard for an affiliate to make a realistic comparison.
Global Telemedicine Network. Since 1998.
August 18th, 2005, 09:33 AM
I'm signed up to your program but I'll have to admit I have yet to get the time to fully look into it and implement it, although I do have 1 domain currently up for it trying to get it grandfathered into the se's a bit before doing to much with it.
Looking at your prices though shipping is included into the price? So the customer does not have to pay for shipping? If that is the case then your program far beats out many of my current programs for some of my top sellers 'birth control' of which I can offer better prices with your program and still make more $$
I haven't had near enough coffee yet so maybe I'm reading this incorrectly, but if that's the case wow I've gotta start changing some of my links over as #1 if I can offer visitors better prices it will almost certainly equate to more sales, #2 customers love products they don't have to pay shipping for #3 I can make a buck or 2 more off each sale of BC at a far better price to my visitors!
Lol leaving my original but adding, had a cup of coffee and found the shipping. Still able to offer a good price though for the BC even with the shipping, still think I'll try swapping a few links to your program by this weekend.
August 18th, 2005, 10:27 AM
OK here is how i like it:
You already have a profit in your base prices + you can put an additional profit on top of this.
Why: it prevents super lowballing, but since pharmacies are already making a huge profit on just base prices it is just not that fair to capitalize on our marketing efforts......
When you go to the wholesaler they wont ask for your books to put an extra price for you if you are making too much on a product right ?
However I am happy with some places such as RXP as they have decent base prices and with the 65/35 you can still make some $$ on their products (besides the fact that they pay and communicate on a timely manner)
Also offering e.g. 60/40 on cheap meds (e.g. $40-$60 antibiotics) just does not cut it ..... on hype meds like viagra and pherntermine you can do that as a sale is in the $200 price range ....
August 18th, 2005, 12:29 PM
...However, many people complained that it was higher than others.. because our included your everything like shipping...
What does fedex charge you to ship an overnight bubble envelope?
August 18th, 2005, 01:12 PM
What does FedEx charge us? Overnight shipping is very close to what the customer typically pays. Now with fuel surcharges almost a monthly occurance, and raising an extra $2.50 per package to have adult signature, honestly FedEx is very expensive.
August 18th, 2005, 01:33 PM
Actually #2 is superior. The price looks lower to the customer because shipping is not included, then you tack on shipping durring checkout and add $18 to your commission. : )
I'm just afraid to change any links over because I heard payment is not timely. RXP is very timely, and their refill percentage is second to none -- no skimming as far as I can tell.
August 18th, 2005, 01:39 PM
Depends on how you market it though, higher cost per item with free shipping can draw just as many. Would almost be nice to have both options run site A with higher product cost but free ship and site B with lower product cost but stick them with shipping. Every customer is different, some will buy a product for $20 more elsewhere to get free shipping while they could have saved $2 in reality to pay $20 less and $18 for shipping.
August 18th, 2005, 01:50 PM
It actually doesnt affect the customer. Only you as the affiliate in calculating your earnings.
Scenerio #1 any shipping you add you get in commission, because the shipping is built into the base pricing.
Scenerio #2 you have to charge $18. if you charge more than $18 you get that additional amount in commission
August 18th, 2005, 01:57 PM
On your comment about payment not being timely. I take it you are NOT referring to our company.
I would challenge ANY affiliate to say they have not been paid properly or timely since our first affiliate program in 1998. Any delays that may have resulted are issues resulting from improper wire information or mailing address. We were the first OP to even offer weekly payments or offer payments by wire.
August 18th, 2005, 02:01 PM
So the customer does not get the sticker shock of the shipping in either case?
Site A with cheap price, customer fills in info then gets suprised with an espensive ship cost.
Site B more expensive cost, but no shipping involved if affiliate chooses to go that route. no sticker shock to the customer for shipping, or am I wrong here and your prices simply go up on the product when you add shipping?
August 18th, 2005, 04:05 PM
Note to RxPayouts:
You probably have the best affiliate backend in the biz, but your commission structure sucks (to say the least) and it is geared to allow lowballers to wreak havoc in this industry.
Nobody (except lowballers) wants your type of commission structure and maybe after seeing the results of this poll you will be more open to adjusting your program (probably not but it's worth a try).
As I have said before, I would use your program if you got rid of the rediculous 60/40 commission payouts.
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